The Hungarian government submitted its proposals for certain tax law changes to be enacted for 2017 on 28 October 2016. Hereby, we summarize the most important proposed amendments.
With respect to the proposed personal income tax related changes, we highlight that the first marriage tax base allowance could be claimed together with the family tax base allowance (for 2015 as well). There are also significant proposed amendments to the new tax return filing option (tax return proposal); and the 6 percent health care charge on interest income and on income from long term savings accounts is expected to be abolished.
As far as corporate income tax is concerned, the proposed amendments mostly affect the incentive elements of the law. Projects and investments in start-up ventures in the area of Energy Efficiency will be supported. Furthermore, a tax allowance would be available in relation to live music services/performance. Besides of the above mentioned cases, the conditions to fulfill in order to benefit from the development tax allowance will become easier.